Global companies in India are becoming more selective in their hiring as AI reshapes roles, intensifying a crunch for talent with advanced tech skills.
Heads of global capability centres (GCCs) and senior executives at multinationals told Reuters that while hiring continues, finding candidates with the right mix of technical expertise and adaptability was becoming increasingly difficult.
"I think the color for every job and role will change ... The biggest challenge is to get the right talent with the right AI skill," said Puneet Chandok, president of Microsoft India and South Asia.
GCCs are global centres of multinational companies that are involved in cutting-edge work ranging from developing dashboard design for luxury cars to helping drugmakers with drug discovery.
India is expected to house 2,117 global centers by the end of fiscal 2026 - about 500 more than in 2021 - employing 2.36 million people and generating roughly $100 billion in revenue, according to a report by industry body Nasscom and consultancy Zinnov earlier this month.
The pace of growth in GCCs has largely hinged on the country's vast pool of skilled workers and relatively low operating costs. However, as AI and automation become central to business operations, companies are seeking more specialized talent across industries.
"There's a lot of need around niche talents in the space of AI, cybersecurity...," Radhakrishnan Kodakkal, newly appointed head of Daimler Truck Innovation Center India, told Reuters.
Entry-level hiring in the age of AI
"It is difficult to find the right (talent) ... it is challenging, and that also, in a way, leads to competitiveness of those talents."
US retail group Catalyst Brands' India managing director, Nihar Nidhi, also highlighted the challenges in finding the right talent.
"It's not easy to attract that talent in the market at this time, especially if you're looking at advanced capabilities," Nidhi said.
All of this has slowed hiring in GCCs, said Lalit Ahuja, CEO and founder of ANSR, which helps firms build and run global centres. "Companies are hiring fewer people, just as a matter of abundant caution."
The shift towards niche skills has upended early-career hiring, with executives saying that traditional entry-level roles could shrink as AI takes over routine tasks.
A joint report by Nasscom and Indeed showed that 40% of employers prefer demonstrable AI skills or certifications over degrees, while another 32% give equal weight to skills, certifications and degrees.
"(The) zero-to-two-years experience ... will go away is my assumption in the next few years," said Deena Dayalan, the global head of digital operations and cloud transformation at U.S. retailer Kimberly Clark.
To bridge the gap, companies are investing in re-skilling programs and exploring partnerships with universities to align curriculum with evolving industry needs.
However, the pace of change is raising concerns about workforce readiness, with 73% of HR leaders flagging a widening skills gap, according to the Nasscom-Zinnov report.
Sandip Patel, IBM's India head, said the government, education system and companies will have to work hand-in-hand to help bridge the gap.
"I look at it as more as trifecta. So, it's industry, government and academia - they have to work together."
